Ranchi, Jan. 29: The state government has decided to reconstitute the Jharkhand State Forest Development Corporation (JSFDC) to ensure the smooth execution of the mega investment proposals received during the recent past.

According to sources, the JSFDC, which the government is going to reconstitute, will be made responsible for liaisoning with the Centre on the transfer of forest land to set up new industries and carry out mining operations.

The JSFDC, which is the only profit-making corporation in the state, has been looking after the kendu leaf business so far. But now, the reconstituted JSFDC will also set up a land bank to carry out compensatory forestation following the transfer of forest land.

According to the latest guidelines by the Centre, at least 33 per cent of the land in the state ought to be covered by forest. At present, forest covers only 29 per cent of the total land in the state. The JSFDC will be carrying out large-scale plantations on non-forest land to achieve the national target.

?Several industrial giants, who have signed MoUs with the state government during the recent past, are to a large extent dependent on forest land for the success of their ventures. The land could be transferred only in accordance with the Centre?s Forest Conservation Act of 1980. The JSFDC will facilitate the transfer of such land,? said a top official of the forest and environment department.

The proposed land bank will be identifying government wasteland for carrying out compensatory forestations, which has already been approved by the government, he added.

?Formal decisions are likely to be taken at the next meeting, where the JSFDC will be reconstituted,? he said.

The state cabinet has already approved setting up of a ?separate? land development bank so as to facilitate smooth transfer of lands to new industries.

The loans of marginal farmers were waived and their land ownership receipts and documents have been returned. However, the proposed new land development bank is yet to become functional.